Differences Between Two Leases

COURSEWORK

INTRODUCTION...........................................................................................................................1
Question 1........................................................................................................................................1
Advice to the client on the action need to take on each unit.......................................................1
Question 2........................................................................................................................................4
Differences between two leases..................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Commercial lease is a clear written contract for the rental by a tenant of business property
which is owned by landlord. Basically, main objective of trade possessions is to earn or to create
large amount of profits which make them distinct from residential (Brennan, 2014). However,
this project is going to outline a case of old industrial real estate where landlord wants to develop
his property. Thus, corrective suggestion is required by the landlord in order to develop the
property for office use. Along with this, differences between various units of the property are
also going to explained in the project.
Question 1
Advice to the client on the action need to take on each unit
According to the given case study, owner of old industrial estate is having 4 units which
is very much appropriate for office development. However, all the 4 units are different from each
other in various aspects. For example; Unit 1 was let on a 15 year FRI (Full Repair and
Insurance) lease which was come into force from December 2004. On other hand, Unit 2 was on
a FRI lease from December 2009 in which tenant was paying rent to the landlord. Unit 3 was
also on lease same as unit 2 but there is a presence of rolling break clause between both the
parties. Lastly, unit 4 is vacant and occupiers are strongly interested for acquiring this space.
Hence, by analysis the whole situation it has been understood that entire estate is in demand for
official use. Thus, before entering into a contract of lease landlord needs to learn about the
Landlord and Tenant act, 1954 in order to understand whole procedure. This act is highly
beneficial for landlord as it helps in clearing all the necessary clauses, norms, beliefs, rules and
regulations of contract. Along with this, possibilities of mistakes and errors will also minimize
by considering the sections of landlord and tenant act (Turvey, 2017). Therefore, proper steps
which needs to be considered by landlord while developing each unit of industrial estate as
offices are discussed as follows-
Unit 1- This was on a let for a 15 year FRI lease which came into force from December
2004 under the landlord and tenant act, 1954. As per the contract, tenant is liable for repairing
and insuring the whole unit in a proper manner. In 2005, extension was built in the property and
added air conditioning at a price of £125,000. Therefore, by considering all the factors landlord
have the authority to offer a contract to the tenant that he can use the building for his business
1